Google misses earnings expectations

It's the first miss for the company in 2 years.

By Elizabeth Strott Jul 16, 2010 10:16AM

Google (GOOG) late Thursday reported net income of $1.84 billion, or $5.71 a share, a 24% increase from the $1.49 billion, or $4.66, it earned a year earlier.

 

Excluding items, earnings were $6.45 per share, missing expectations for $6.52. It was Google's first earnings miss since the second quarter of 2008.

Excluding revenue passed on to partner sites, sales were $5.09 billion, topping expectations for $4.98 billion.

 

Google's shares slumped $26.14, or 5.3%, to $467.88.

 

Google remains "best positioned to benefit from the recovery in ad spending and overall growth in Internet usage," FBR Capital's Heath Terry wrote in a note to clients. Terry cautioned that "spending growth, regulatory scrutiny, and growing competition on multiple fronts remain risks."

 

The company said its paid clicks, or the number of times that users click on its advertisements and generate revenue, rose 15% from the second quarter of 2009, flat with the first quarter. Analysts had been looking for an increase of between 15% and 17%.

 

The prices paid for clicks on Google's advertisements rose 4% from the same quarter last year.

 

Google also said it added 1,184 employees during the second quarter, its most active hiring period since the first quarter of 2008.

2Comments
Report
Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
Categories
100 character limit
Are you sure you want to delete this comment?

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

RECENT QUOTES

WATCHLIST

Symbol
Last
Change
Shares
Quotes delayed at least 15 min
Sponsored by:

MARKET UPDATE

NAMELASTCHANGE% CHANGE
There’s a problem getting this information right now. Please try again later.
NAMELASTCHANGE% CHANGE
There’s a problem getting this information right now. Please try again later.
Market index data delayed by 15 minutes

[BRIEFING.COM] Recent action saw the S&P 500 (+0.2%) inch back in the direction of its session high at 1989.29, while the Dow Jones Industrial Average (-0.1%) has yet to poke its head out of negative territory. All in all, today's session has been fairly quiet with the benchmark index sticking to a seven-point range.

Despite today's range-bound action, the S&P 500 remains on track to finish the month on an upbeat note. The index is higher by 1.4% so far in July with six trading ... More


Currencies

NAMELASTCHANGE% CHANGE
There’s a problem getting this information right now. Please try again later.
Sponsored by:

VIDEO ON MSN MONEY